Chicago Board of Education Downgraded to B3

 

Moody’s has announced that it is downgrading the general obligation bond rating to B3 from B2.  Moody’s cites continued credit pressures and an expectation that theses pressures will intensify during the current fiscal year.  The District is scheduled to make a $718 million pension contribution, but assumes the payment will be lowered to $465 million to due pension assistance that is not yet definite.

The Chicago Tribune article refers to Moody’s concern about the District’s reliance on short-term debt, deepening structural deficit and a budget built on unrealistic expectations.

Moody’s Investors Service announcement

Chicago Tribune article